03/03/2022 08:00 AM House COMMUNITY & REGIONAL AFFAIRS

            SB 143-COMMON INTEREST COMMUNITIES; LIENS                                                                       
                                                                                                                                
9:45:00 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HANNAN announced that the  final order of business would                                                               
be SENATE BILL  NO. 143, "An Act relating  to horizontal property                                                               
regimes  and   common  interest  communities;  and   relating  to                                                               
mortgages, deeds of trust, and other property liens."                                                                           
                                                                                                                                
9:45:27 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HANNAN opened public testimony on SB 143.                                                                              
                                                                                                                                
9:45:48 AM                                                                                                                    
                                                                                                                                
ANNA BRAWLEY,  President, Edgewater Villa HOA  Board, referred to                                                               
a  letter  of  support  from the  Edgewater  Villa  Home  Owner's                                                               
Association Board,  "in a prior  committee."  She  emphasized the                                                               
financial impact  of one financial  delinquency from one  unit on                                                               
all the other units.  She said  SB 143 addresses this issue.  She                                                               
described a  situation in  which the  HOA, incorporated  prior to                                                               
1986, did  not have first  priority on a  lien and was  unable to                                                               
collect an unpaid  assessment, and this resulted  in costly legal                                                               
fees.   She said the  HOA has  considered changing its  bylaws to                                                               
address this  problem, but  there would be  cost to  mitigate the                                                               
risk.  She indicated that SB  143 also addresses this issue.  She                                                               
strongly urged  the committee  to pass  SB 143.   In  response to                                                               
Representative Drummond,  she confirmed she  is the chair  of the                                                               
Turnagain Community Council.                                                                                                    
                                                                                                                                
9:50:01 AM                                                                                                                    
                                                                                                                                
DEBORAH BOROLLINI, representing self,  testified in opposition to                                                               
SB 143.  She said the  committee should have heard testimony from                                                               
the Alaska Housing Finance Corporation  (AHFC), which she said is                                                               
the property owner  of several pre-1986 condominiums.   She spoke                                                               
about  law suits  and the  effects of  them on  homeowners.   She                                                               
mentioned the  notice requirement and  pointed out the  length of                                                               
time it  takes for  mail to be  delivered, including  when mailed                                                               
from out  of state.   She said  she is a  former paralegal.   She                                                               
warned  that condominium  association boards  can "go  rouge" and                                                               
"have  taken unlawful  actions against  homeowners in  the past."                                                               
She talked about the trauma faced  by homeowners, and she said it                                                               
is  not  uncommon  for  HOA   board  members  to  not  understand                                                               
financial records and  federal and state laws.   She related that                                                               
the majority of those who have  reached out to her for assistance                                                               
have  been Alaska  Native minorities  and first-time  home buyers                                                               
who  do not  have the  money to  hire lawyers.   Sharing  her own                                                               
story, Ms.  Borollini expressed that  if she had not  reached out                                                               
to  AHFC  directly, she  would  have  lost  her  own home.    She                                                               
indicated  a   desire  to  see  legislation   that  will  protect                                                               
homeowners,   most   especially   those   who   own   condominium                                                               
properties.                                                                                                                     
                                                                                                                                
9:55:06 AM                                                                                                                    
                                                                                                                                
JASON  HENNINGS, representing  self,  stated that  he has  worked                                                               
with HOAs on and off for ten years  and supports SB 143.  He said                                                               
of two condominiums  he has managed, the one built  in 1986 had a                                                               
delinquency rate of 5 percent, while  the one built in 1985 had a                                                               
delinquency rate of  24 percent.  He talked  about going directly                                                               
to the  bank when there is  a delinquency and working  out a plan                                                               
to avoid foreclosures.  He  emphasized getting everything "on the                                                               
same playing  field" by  giving those HOAs  formed prior  to 1986                                                               
the same rights  as those formed in  1986 and later.   He said he                                                               
thinks  "this  process"  will  help  HOAs  in  Alaska  and  "make                                                               
everything fair."                                                                                                               
                                                                                                                                
9:56:43 AM                                                                                                                    
                                                                                                                                
CINDY  LENTINE,  President,  Commodore  Park  HOA,  testified  in                                                               
support  of SB  143.    She described  the  condominiums and  the                                                               
variety of residents, indicating some  are on fixed incomes.  She                                                               
said  there have  been multiple  occasions in  which some  owners                                                               
have not  paid, and  the other  owners "must  meet the  cost when                                                               
this happens."   Meanwhile, the bank gets the benefit  of the HOA                                                               
interest without contributing to the cost.   She said SB 143 will                                                               
solve this  problem by treating  pre-1986 properties the  same as                                                               
post-1986 properties in regard to  the liens.  She said Commodore                                                               
Park has one or two amended  governing documents but has not been                                                               
able to get response from the  bank to get lienholder approval in                                                               
writing    a requirement.   The proposed legislation  solves this                                                               
problem.                                                                                                                        
                                                                                                                                
9:58:38 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  HANNAN asked  Emma Torgerson  whether the  bill sponsor                                                               
had heard from AHFC.                                                                                                            
                                                                                                                                
9:59:06 AM                                                                                                                    
                                                                                                                                
EMMA  TORGERSON,   Staff,  Senator   Josh  Revak,   Alaska  State                                                               
Legislature,  on behalf  of Senator  Revak, prime  sponsor of  SB
, stated  that the  sponsor's office had  not heard  from AHFC                                                               
regarding the proposed legislation.                                                                                             
                                                                                                                                
9:59:29 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HANNAN,  after ascertaining  there was  no one  else who                                                               
wished to testify, closed public testimony on SB 143.                                                                           
                                                                                                                                
CO-CHAIR HANNAN stated  her intention to have  the committee send                                                               
a formal request to AHFC "to weigh in on the bill."                                                                             
                                                                                                                                
[SB 143 was held over.]